The Great Carbon Collapse

In the UK Guardian last month, a leading European energy executive warned that Europe’s carbon market was becoming a “new type of sub-prime tool.” More analysis from the article:

The EU’s emissions trading scheme was set up as a market solution to cut greenhouse gas pollution from industry. Polluters were issued with permits that can be traded between companies and countries as a way of encouraging an overall reduction in carbon output. However, companies are now cashing them in. Up to €1bn-worth of permits are said to have been sold off in recent months as companies see an opportunity to bring in funds at a time when their carbon output is expected to fall due to lower production.